Synchronoss Technologies Inc (NASDAQ:SNCR) raised its full-year financial outlook off the back of a strong third quarter marked by continued subscriber expansion and operational efficiencies.
For the quarter ended September 30, the company posted total revenue of $43 million, up from $39.8 million in the same period last year, driven by a 5.1% rise in cloud subscribers.
Recurring revenue made up 92.2% of total sales, an increase from 89.5% a year ago.
Synchronoss reported an adjusted EBITDA increase of nearly 37%, reaching $12.7 million, or 29.5% of total revenue, compared to $9.2 million, or 23.2%, last year.
In light of the quarter’s performance, Synchronoss raised its 2024 revenue outlook to a range of $172 million to $175 million, reflecting 6% to 8% growth year-over-year. The company also boosted its adjusted gross margin target to between 77% to 78% from the previous 73% to 77% range, and increased its adjusted EBITDA expectation to $47 to $48 million.
“We continue to make strong progress in strengthening our financial performance and customer relationships,” Synchronoss CEO Jeff Miller said in a statement accompanying the results.
Miller highlighted the three-year extension with SFR, which covers a subscriber base of 27 million, as well as a series of upgrades to Synchronoss’s Personal Cloud platform, including AI-enhanced features aimed at improving user experience and system efficiency.
During the quarter, the Bridgewater, New Jersey-based company also rolled out an auto-scaling feature to further streamline operations, benefitting both Synchronoss and its major carrier partners. The launch of an updated Personal Cloud platform introduces new tools, including AI-Enhanced Genius, offering one-click editing, and enhanced backup capabilities.
Synchronoss revised its recurring revenue estimate upward to between 90% to 92% of total revenue and adjusted its cash flow outlook to account for delayed tax refunds, now projecting net cash flow of approximately $5 million for 2024.
The company reported a net loss of $5.7 million, or $0.56 per share, widening slightly from a net loss of $5.2 million in the prior-year quarter. The results were affected by a $5.5 million impact from foreign exchange fluctuations. Income from operations rose to $5.5 million, reversing a loss of $3.8 million in the prior year.
Miller and CFO Louis Ferraro will be attending two upcoming investor conferences. They will present at the Sidoti November Virtual Investor Conference on November 13 at 10:00 AM ET, with a webcast available on the Synchronoss Investor Relations website.
The team will also participate in the Northland Growth Conference on December 12, with one-on-one meeting registration through a Northland sales representative.